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Reflecting On S&P 500 Annual Returns And Uncorrelated Assets

Published 12/05/2021, 12:26 AM
Updated 07/09/2023, 06:31 AM
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S&P 500 Average Annual Returns

  • Source: Ycharts performance calculator
  • All returns as of 11/30/21

The above table was prepared for a client dinner last night and the results surprised me.

The 21-year return for the S&P 500 of 7.34% is consistent with long-run return on stocks, but note the last 5–10 years and then note the returns off the lows of March 9, 2009.

This data shocked me.

In personal emails to clients, the concept of “uncorrelated assets” is being discussed. Owning assets like gold (SPDR® Gold Shares (NYSE:GLD)) again, which as of November 30, ’21 had a 10-year return of -0.69% is now part of every client discussion. From 2000 to 2011, the year gold peaked, the GLD returned roughly 18% a year, but that’s a little misleading too, since the GLD ETF wasn’t created until 2005.

I'lll have a longer article on the topic before year-end 2021. Thanks for reading, and take everything you read with a healthy dose of skepticism.

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